Income Tax

GSTR-4 Annual Return Guide: Due Date, Rates & Filing

If you’ve opted for the GST Composition Scheme, you know that the biggest perk is the reduced paperwork. Instead of filing every month, you only have to deal with one annual return: the GSTR-4. While you still make small quarterly payments (via CMP-08), GSTR-4 is your big year-end summary. It’s the final health check where you reconcile your sales and purchases for the entire year. For the Financial Year 2025-2026, there’s some good news: the government has permanently pushed the deadline forward to give small business owners more breathing space. Let’s look at how to get this filed without the stress.

When is the Due Date for GSTR-4?

In the early days of GST, the deadline was April 30th. However, a major update (Notification No. 12/2024) has changed this for the long term.

  • The New Deadline: From FY 2024-25 onwards, the due date is June 30th of the following financial year.
  • For FY 2025-26: You must file your GSTR-4 on or before June 30, 2026.

Pro Tip: Don't wait until June 29th. The GST portal often gets slow during the final days, and missing the deadline means an automatic daily fine.

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Who needs to file GSTR-4?

Not everyone in GST uses this form. It is specifically designed for:

  • Small Traders and Manufacturers: Those with a turnover up to ₹1.5 Crore (₹75 Lakh for North-Eastern states).
  • Service Providers: Those with a turnover up to ₹50 Lakh.
  • Transitioners: If you were under the Composition Scheme for even one day during the year, you must file GSTR-4 for that period.

GST Rates for Composition Taxpayers (2025-26)

One of the best things about GSTR-4 is the low, flat tax rates. You don't have to worry about the standard 12% or 18% slabs. Instead, you pay based on your business type:

Category of Business

CGST

SGST

Total Tax Rate

Manufacturers & Traders

0.5%

0.5%

1%

Restaurants (Non-alcoholic)

2.5%

2.5%

5%

Service Providers

3.0%

3.0%

6%

How to file GSTR-4: A simple 5-Step process

Filing GSTR-4 is much simpler than regular returns because you don't need to upload every single invoice.

  1. Log in to the Portal: Go to [suspicious link removed] and navigate to Services > Returns > Annual Return.
  2. Select the Year: Choose FY 2025-26 and click on Prepare Online.
  3. Check Auto-populated Data: The portal will automatically pull your sales data from the CMP-08 forms you filed throughout the year.
  4. Enter Purchase Details: This is the part that takes time. You need to enter a summary of your purchases, especially those where you have to pay tax under Reverse Charge (RCM).
  5. Submit and Verify: Click Compute Liability, pay any extra tax due, and verify using your Aadhaar OTP (EVC).

Late Fees and Penalties

If you miss the June 30th deadline, the GST portal will automatically calculate a late fee when you eventually file.

  • For Regular Returns: ₹50 per day (₹25 CGST + ₹25 SGST), capped at a maximum of ₹2,000.
  • For NIL Returns: If you had zero business, the fee is ₹20 per day (₹10 + ₹10), capped at ₹500.
  • Interest: If you owe any tax and pay it late, you’ll also be charged 18% interest per year on the unpaid amount.

Summary: GSTR-4 Cheat Sheet

Feature

Details for FY 2025-26

Frequency

Once a year

Filing Deadline

June 30, 2026

Can you claim ITC?

No. Composition dealers cannot claim credit for tax paid on purchases.

Can you collect tax?

No. You cannot charge GST to your customers.

Revision

Once filed, GSTR-4 cannot be revised. Double-check everything!

Conclusion

GSTR-4 is the final exam for small businesses under the Composition Scheme. Since you already file CMP-08 every quarter, this annual return should be a breeze if your books are in order. The key is reconciliation; ensure that the total sales you report in GSTR-4 match the sum of your four quarterly CMP-08 filings. By taking advantage of the June 30th deadline, you can ensure your business remains compliant without the monthly return headache that regular taxpayers face.

Frequently Asked Questions (FAQs)

Is GSTR-4 different from GSTR-9?

Yes. GSTR-4 is for Composition taxpayers. GSTR-9 is the annual return for Regular taxpayers.

Do I need to file GSTR-4 if I had zero sales?

Yes. You must file a Nil GSTR-4. If you don't, you will still be charged the ₹20 per day late fee.

What is GSTR-4A?

It’s a read-only form. It shows you the purchases that your suppliers have uploaded. You use it to cross-check your own records before filing GSTR-4.

Can I change my tax rates in GSTR-4?

No, you must pay according to the category you selected when joining the scheme (1%, 5%, or 6%).

I opted out of the scheme in October. Do I still file GSTR-4?

Yes, but only for the period from April to September when you were under the scheme. For the rest of the year, you'll file regular GSTR-9.

Can I file GSTR-4 without filing CMP-08?

No. The portal requires all four quarterly CMP-08 statements to be filed before it lets you start the GSTR-4.

Is a digital signature (DSC) mandatory?

For companies and LLPs, yes. For individuals and proprietorships an Aadhaar OTP is enough.

What if I missed filing for more than 3 years?

As per a new 2025 advisory, you cannot file a GST return if it is more than three years overdue. This could lead to your GST registration being cancelled permanently.

Why can't I claim Input Tax Credit (ITC)?

The Composition Scheme is a trade-off. You get a very low tax rate (1%) in exchange for giving up the right to claim credit on your purchases.

Do I need to mention HSN codes in GSTR-4?

For most small composition dealers, an HSN-wise summary is optional, which saves a lot of time!